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**JANALA** · 02-06-2009, 10:36 AM

HK regulator probes PCCW privatisation vote
Posted: 05 February 2009 1309 hrs

HONG KONG: Hong Kong's financial watchdog said Thursday it was investigating a vote by shareholders of telecom giant PCCW approving a controversial bid to take the company private.

The Securities and Futures Commission said it had seized voting records from Wednesday's meeting and was aware of allegations of vote-rigging.

SFC officers left the venue of the meeting late Wednesday armed with boxes of voting documents.

"The SFC can confirm our staff were present at the PCCW meeting to monitor the voting process," a spokesman for the regulator told AFP.

"The SFC has taken possession of the voting records and will be making further inquiries. We do not have other comments to make at this stage."

The privatisation deal was accepted by holders of more than 75 per cent of the total number of shares represented at the meeting following an often rowdy six hours of debate.

But it was secured against the background of vote-rigging allegations by prominent shareholder activist David Webb.

PCCW chairman Richard Li and state-owned China Netcom, the two largest stakeholders in the company, offered to take it private by paying minority shareholders HK$4.50 (US$0.58) per share.

But minority shareholders considered the offer as far too low as the firm's share price had plunged 97 per cent from its peak since 2000, according to the South China Morning Post.

PCCW shares were valued at HK$4.17 Tuesday when trading was suspended ahead of Wednesday's meeting.

Webb said earlier this week he had received an anonymous tip-off claiming hundreds of Fortis Insurance sales agents were each offered one lot, or 1,000 shares, in PCCW in return for voting in favour of the buyout bid.

02-06-2009, 10:36 AM	#2
JANALA Join Date Oct 2005 Posts 437 Senior Member	HK regulator probes PCCW privatisation vote Posted: 05 February 2009 1309 hrs HONG KONG: Hong Kong's financial watchdog said Thursday it was investigating a vote by shareholders of telecom giant PCCW approving a controversial bid to take the company private. The Securities and Futures Commission said it had seized voting records from Wednesday's meeting and was aware of allegations of vote-rigging. SFC officers left the venue of the meeting late Wednesday armed with boxes of voting documents. "The SFC can confirm our staff were present at the PCCW meeting to monitor the voting process," a spokesman for the regulator told AFP. "The SFC has taken possession of the voting records and will be making further inquiries. We do not have other comments to make at this stage." The privatisation deal was accepted by holders of more than 75 per cent of the total number of shares represented at the meeting following an often rowdy six hours of debate. But it was secured against the background of vote-rigging allegations by prominent shareholder activist David Webb. PCCW chairman Richard Li and state-owned China Netcom, the two largest stakeholders in the company, offered to take it private by paying minority shareholders HK$4.50 (US$0.58) per share. But minority shareholders considered the offer as far too low as the firm's share price had plunged 97 per cent from its peak since 2000, according to the South China Morning Post. PCCW shares were valued at HK$4.17 Tuesday when trading was suspended ahead of Wednesday's meeting. Webb said earlier this week he had received an anonymous tip-off claiming hundreds of Fortis Insurance sales agents were each offered one lot, or 1,000 shares, in PCCW in return for voting in favour of the buyout bid.
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